Fees could to double for Colorado health insurance exchange

Electa Draper- The Denver Post

The Connect for Health Colorado staff has recommended more than doubling the fee that insurers pay on each policy purchased on the exchange — a charge that is passed on to consumers.

The state marketplace would increase the carrier fee from 1.4 percent to at least 3.5 percent of the premium charged on exchange health plans — the same rate charged through the federal exchange, under the recommendation made Monday.

For a consumer holding a $4,000-a-year health plan, the increase would be $84 a year. The estimated increase in revenue for the exchange would be about $5.8 million.

The staff also recommended Monday that the board increase the monthly assessment the exchange charges for each private insurance policy purchased on or off the exchange, from the current $1.25 to $1.80. The assessment, unless extended by legislators, ends next year, fiscal year 2016-17.

It applies to 1.2 million insurance policies statewide in a calendar year. For fiscal year 2015-16, the exchange estimates it would reap a total of almost $20 million, or about $2 million extra.

Exchange officials urged the board to make a decision in the next week so insurance carriers can file their 2016 premiums for the state health insurance exchange.

The board didn't vote but will meet again — likely this week.

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